The High Commissioner was speaking on the sidelines of the Lakme Fashion Week Winter/Festive 2017, where the Australian government's Department of Foreign Affairs and Trade-supported designer Gaurav Jai Gupta presented a special collection.
"The Australia-India relationship is stronger than it has been for a very long time and I can only see that improving and getting stronger with time. We are in the same region. If you go to Perth, the first landmass to its west is India.
"We are starting to recognise each other. We have started seeing Australian filmmakers making movies on India and Australian students coming to India to study. The relationship is becoming deeper and deeper," Sidhu told reporters.
Sidhu said that such collaborations will bring the people of the two nations closer.
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"When we talk about relationship between two countries, we talk about political or diplomatic and economic relationships, and these things matter a lot. But what also matters is the cultural connection and how we grow to understand each other better.
"When we work together in collaboration, even if it is something as simple as using merino wool in Indian designs, it makes us appreciate little bit more about each other's countries," she said.
The designer visited Australia last year in November to discuss the collaboration and Sidhu said it was "a perfect partnership".